ATI catalyst driver and control panel installation problems!!!

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I just recently reformatted my drive and did a clean install of winxp pro. I then downloaded xp sp2 and a whole bunch of other updates and .net framework 2.0 etc... I have an ATI 9800pro 256MB card on board. I downloaded the latest catalyst 6.12 drivers and have tried installing it. During the installation it goes through the installation of the primary and secondary 9800pro device and then I get the balloon pop up from the windows taskbar stating "a problem occurred during hardware installation...." It then continues to install the wdm but gets stuck at this point. I can close the wdm setup window and it will continue with the catalyst control panel setup without any problems. After the restart my computer will hang on the desktop screen ( but this I assume is normal since ATI states in their readme file that there is a chance that system may hang during restart after catalyst installation) I simple reset my system and after loading windows when I run the catalyst control panel and choose 3d tab it gives me a "windows preview application error". At this point all seems to work well in term of 3d acceleration and I can even play warhammer dark crusade. But if I restart my computer another time then when windows loads up it takes a long time for the desktop screen to refresh and start menu items to pop as though I am running a cheap VGA card (simply put it goes back to the way it was before installing ati catalyst with really low resolution desktop). Now if I try to play warhammer dark crusade or any other game for that matter I get an error stating no 3d accelerator device found. If I open Catalyst control panel and choose 3d tab it will now state "no opengl device found....". Please help me to resolve this issue. I have tried multiple catalyst versions each time making sure there were no registry keys or folders left behind from previous catalyst installations.

I have tried catalyst 6.12, 6.1, 6.3, 5.9 all which gives me the same problems.

Version 5.3,4.8 which I have also tried will cause a scrambled screen to appear after the restart from the installation every time.


I had the 9800 pro card working quite fine with I believe one of the version 5 catalyst drivers before doing the clean windows xp pro installation. If its any use I was using WinXP home edition at the time. Any help in fixing this issue will be greatly appreciated. I have given a detailed description hoping someone will be able to help. Thanks and happy holidays!
 
I have done a reinstall of windows once again this time only applying SP1 rather than SP2 and the latest catalyst drivers seem to be working. However as soon as I installed SP2 the above problems came back with the slow desktop refresh and low resolution. I also cannot get any 3d acceleration capabilities. Please help with this regard thank you.
 
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